Experienced Offshore Accounts Lawyers Handling Foreign Bank Account Reporting Matters
If you have one or more foreign financial accounts with a total value that reaches or exceeds $10,000 at any point during the year, you must file a Report of Foreign Bank and Financial Account (FBAR). If you are a signatory on a foreign account that has at least $10,000 at any point over the year, you are also obligated to comply with FBAR requirements. The mandate to file an FBAR is applicable based on the aggregate or combined value of all accounts. This means taxpayers with two $5,000 accounts must complete FBARs.
FBARs are filed with the Financial Crimes Enforcement Network (FinCEN), rather than the IRS, and are also filed separately from a tax return. It is important to understand when and how to file this form in order to avoid legal consequences that may result from a failure to file.
An offshore accounts lawyer can provide advice on obligations related to FBARs. Failure to file is a very serious legal matter that could lead to substantial penalties. Kevin E. Thorn, Managing Partner of Thorn Law Group, can offer you legal advice on what to do if you have not filed FBARs as mandated and assist if your offshore accounts are under investigation.
What Happens if You Don't File FBARs?
If you have an offshore account and do not file a Report of Foreign Bank and Financial Account, you should be aware that the financial assets kept within the account are at risk. Failing to file when mandated can result in civil and criminal action being taken against you. In many cases, individuals have been hit with financial penalties that exceeded the total value of their undeclared offshore accounts as a result of failing to file a Report of Foreign Bank and Financial Account.
The IRS has created a program, called the Offshore Voluntary Disclosure Program (OVDP), which allows account holders who had non-willful violations of FBAR mandates to come forward and voluntarily disclose their previously unreported offshore funds. But while participation in the OVDP can allow taxpayers to avoid criminal prosecution and reduce the severity of potential consequences associated with not filing FBARS, there are still substantial financial penalties that account holders can face. Further, not everyone is eligible for the OVDP, with investors who are already under IRS investigation among those who cannot participate. This is why it is so important to talk with an offshore accounts lawyer before deciding on your course of action regarding FBARs.
Contact an FBAR Lawyer to Resolve FBAR Issues
An offshore accounts lawyer at Thorn Law Group can provide guidance regarding FBARs and assist you with the filing process. As a former attorney for the IRS, Kevin E. Thorn has insider experience as to how the IRS pursues civil and criminal sanctions. This invaluable legal background and knowledge uniquely positions our firm to help you fight allegations of non-compliance with FBAR mandates.
If you have not filed FBARs in the past and are concerned about facing penalties, contact Managing Partner Kevin E. Thorn today to schedule a consultation to discuss the best approach for your situation.
